Ford wins tax break on Flat Rock plant

The eight-year abatement is the same length as an exemption granted last fall for Ford?s $322 million investment to build Fusion cars at the factory.

Dean Cousino

Ford Motor Co. has received an eight-year property tax break for new investment to build the Ford Fusion at the former Auto-Alliance International Inc. plant in Flat Rock.

Monday night, the city coun­cil approved a 50 percent in­dustrial facilities tax exemption for the automaker by a 5-2 vote after a public hearing. Ford had requested a 12-year abatement on its plant at I- 75 and Gibral­tar Rd., but the council opted for eight years instead, Mayor Jonathan Dropiewski said.

The length of the tax break is the same as the eight- year, 50 percent tax exemption the automaker received from the city last fall for its $ 322 million investment to build the Fusion, Mayor Dropiewski said. Ford already has rolled out its first models and they are already at area dealerships, he said.

Councilman Ken Wrobel and Councilwoman Debbie Wilkins voted no on the abatement. Only one citizen spoke against the tax break at the hearing.

Before the vote, representa­tives from Ford announced to the council the company is add­ing more than 300 more jobs to the work force in addition to the 1,200 it has already hired, the mayor said.

? We are very happy about that,? Mayor Dropiewski said Tuesday night. ? This is more good news for Flat Rock. Ford?s is showing a strong commit­ment to ( the city). They are a big part of our tax base and are continuing the legacy of Henry Ford in this town.?

A key part of the accord is that if Ford would close the plant, the company would have to pay back all the latest taxes being written off on the plant, he said.

? They?ve agreed not to con­test the personal property tax for three years,? Mayor Drop­iewski said. ? That gives us a pe­riod of tax peace.?

Ford formally took charge of the factory in September, 2012.

The council also voted 6- 1 to transfer the abatement for the plant from AAI to Ford and amended the 2012 exemption to reflect the change in total in­vestment costs.

Ms. Wilkins also voted no on these two motions.

The requests will be filed with the Michigan Tax Commission as required under law.

Ford?s takeover marked the end of the plant producing Mazda vehicles and the addi­tion of a second shift to build the Fusion.

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